SFNC Round 1

ECICOG and HTFJC are currently accepting applications for Round 1 of the Single Family New Construction program. While there is no deadline for application, applications will be processed on a first-come, first-served basis. We recommend that you submit your application sooner rather than later.

Program Summary:

As part of ongoing recovery efforts in response to the floods of 2008, the East Central Iowa Council of Governments (ECICOG), in conjunction with the Iowa Department of Economic Development (IDED), continues to offer a new home construction program.

Eligible persons are offered acquisition assistance (in the form of a five-year forgivable loan) of up to 30% of the purchase price of a newly constructed home in the city of Lone Tree (only select lots are still available). In total, there will be 54 new homes constructed in the greater Iowa City metro area and 12 homes in Palo. Currently, 3 homes remain available in Lone Tree.

For homes in Johnson County, the program is administered by the Housing Trust Fund of Johnson County, while homes in Palo are administered by ECICOG.

• The purchase price of the homes is $180,000. This price is fixed and no owner requested upgrades are allowed that will exceed the listed sale price.
• The homes in this program are not custom built homes; however the builders may offer some choices within their development budget. Availability and range of choices are subject to the discretion of the builder.
• If you are approved for the program and agree to purchase one of the participating properties, the program will pay 30% of the purchase price of the home at the time of the closing.

What are the rules?

• All applicants who meet household income limits set by this program will be considered. However, should there be more applicants than there are homes in this program, applicants will be admitted on a first-come first serve basis.
• You and your family must meet the income guidelines (less than 100% of the area median income), based on the number of persons intending to reside in a household purchased through this program (as set by the Federal Dept. of Housing and Urban Development each year). NOTE: Properties in different counties have different income guidelines.
• Income and assets will be verified through tax and income documentation and third-party verifications.
• Applicants must be able to secure a loan with a program-approved lender sufficient to cover the cost of purchasing a participating home available at the time that they apply for the program.
• You must obtain your mortgage from a lender that is approved by ECICOG to participate in this program (see below). Mortgages from no other financial institutions will be accepted other than the ones on this list. The mortgages obtained must be at least a 15-year, fixed-rate loan with early pay-off allowed.
• The home purchased must be one of the participating properties in this program.
• The assistance will be paid in the form of a five-year forgivable loan, and a lien will be placed on the property. The lien will provide that 20% of the assistance balance will be forgiven each year for five years. After five years, the loan is fully forgiven, and the lien will be removed from the property. You may sell the home during the five-year period, but the remaining balance of the loan must be repaid to ECICOG.
• The home must be your primary residence during the five-year period.
• Assistance under this program cannot be combined with any Federal Jumpstart Homebuyer Assistance or State Jumpstart down payment Assistance on the same dwelling unit or person/household served.
• Applicants must be able to purchase a home from this program without making this purchase contingent on the sale of a residential property they currently own.
• Applications must be complete at the time they are submitted.
• It will be the responsibility of the homebuyer to comply with all requirements of ECICOG, the lender and the property seller.
• ECICOG does not guarantee that any applicant will be able to purchase a home.

I am interested. What happens next?

1. Find out as much information as you can about the homes that are eligible for this program to determine if:
   You would be interested in buying one of the homes; and
   You can afford the home, assuming that you qualify for the program.
2. Submit an application to the Housing Trust Fund of Johnson County (HTFJC) or ECICOG, depending on the property you choose.
   Note: You will need to have a copy of your 2008 or 2009 (the most recently completed) tax return and basic financial information available to complete the application.
3. HTFJC/ECICOG will verify your eligibility and income based on information submitted with your application, and if you are not eligible you will be notified immediately.
4. Contact one of the participating program lenders to determine if you will be able to afford mortgage and tax payments for a home in this program.

Income Guidelines:

Johnson County

Property Information

Homes in Palo:

All Round 1 properties in Palo have been sold.

Contact:

ECICOG
700 16th Street NE, Suite 301
Cedar Rapids, IA 52402
Fax: 319-365-9981
E-mail: JJ.Breen@ecicog.org

Questions can be directed to: JJ Breen, Disaster Recovery Coordinator, 319-365-9941, ext. 139

 

Homes in Lone Tree

Click here for Information on Johnson County Properties

Contact:

Housing Trust Fund of Johnson County
322 East Second Street
Iowa City, IA 52240
Fax: 319-358-0212
E-mail: ADonham@HTFJC.org

Questions can be directed to: Tracey Achenbach or Andrew Donham, Housing Trust Fund of Johnson County, 319-358-0212